Ticker Tape Digest

Friday - April 12,  2019

By Leo Fasciocco -- TTD

   Ticker Tape Digest presents its daily stock market report containing stocks to go long as Breakout Trades, Quick Trades, or Bargain Accumulation Trades.

  We also feature stocks under Significant Accumulation that are poised to breakout.

   The TTD report also contains stocks to short as  breakdown plays and as bargain (swing trade) shorts.

  Investors should  tend to try to go with a strategy that fits with the stock market's trend, unless there is a special situation play.

  TTD's Breakout Stocks - Long are most suitable for aggressive investors seeking ideal entry points into leading stocks, especially during bull markets. They can do extremely well in bull markets with gains of as much as several hundred percent.

 These stocks can also do extremely well during strong market rallies, or if they are in a industry group that is performing very well. They tend to have strong earnings outlooks and are near new-52 week, or all-time highs.

  TTD Quick Trade Stocks - Long These are leading issues that have pulled back in recent days, but could move higher soon. They are most suitable for Aggressive Investors willing to trade short term. These stocks will do extremely  well during market advances. They have about 74% win rate. During market rally sequences the win rate is even higher. The return is small 3% to 8% in just a few days.

 TTD's Bargain Buy Trades - Long - Long Term.  These are for conservative bullish Investors These long-term buys are ideally suited for entry into stocks on pull backs within overall up trend. These stocks can give a good return long-term especially during a bull market.

   TTD also presents Stocks To Sell or Sell Short. These issues are suitable for aggressive investors willing to take short positions both as trades or for longer-term plays. These stocks will do very well during bear markets or market pull backs.

  TTD's Bearish breakdown stocks to sell short. These issues have potential to fall sharply. They often show a technical breakdown and also some fundamental business problem such as weak earnings.  

 TTD's multi-media updates include a slide-show that presents charts and analysis at midsession. Some times TTD presents feature analysis on stocks and the market. TTD uses Windows Media Files. (WMV).

 TTD also presents a "Breakout Watch List" that is up dated daily. This list consists of key stocks in position to breakout. A close watch of this list can put you in the stock just as it breaks out. A good idea is to study the list and be ready to move into a stock quickly as it hits its breakpoint.

TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the breakpoint. The idea is to get "elbow room" if the stock should follow through to the upside. This is very important in being successful in making big money with breakout stocks.

It is also essential to have a stop loss strategy for all stocks in which positions are taken. Not every stock will work as expected. It is important for investors to "police" their portfolios and avoid getting trapped in any bad positions.

 Quality rating of breakout  Two key factors: 1 - Stock near all-time high in price or near a 52-week high. 2 - earnings growth current year is strong. The ideal play is a stock with an Above Average Quality Rating. The stock is near a new high and will have strong earnings. TTD's other ratings are Average and Below Average.

   TTD also has  special feature sections on  Educational Tips on Investing.

   To email Mr. Leo Fasciocco  leo@tickertapedigest.com.   

   For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.

Friday - April 12, 2019

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  11

Quality of Breakouts -  Above Average

Stocks Screened - 12,234

Bull side -   Bulls have several good looking breakouts Friday. However, they are bit conservative.

Stock market  -  Market averages remain bullish in all time sectors.

Comment -  TTD sees the market still holding its up trend. Earnings will now becoming in the next several weeks. Bulls need to be very alert.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Earnings beats for Friday. JPM and PNC,

Stock Market Momentum

(Daily is based on a moving average)

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action

(The “breakout List” gives all stocks breaking out of a base of five weeks or more. These stocks have a good chance to trend higher. However, a stop should be used to avoid those that do not work.

They are ranked according to percentage change and classified as leaders or other.

(Trading strategy: One should buy breakout stocks near breakpoint by using market order or stop buy.  They can also be bought soon after a follow through move, sometimes on an intraday pullback. )  

Today's Featured TTD Breakout Stock

Harris Corp. (HRS) - 167.84, up 2.62 - Breakpoint 166.78

Net To Rise 23% in Fiscal 2019 (June), TTD Targets 195 

     HRS, based in Melbourne, Fla., produces communications and electronic systems for the military and space. Annual revenues: $6.2 billion. HRS's stock moves higher Friday and breaks out from its eight-week flat base.

  So far today, HRS is trading 481,734 shares. Its average daily volume is 681,000 shares.

  TTD highlighted HRS as a breakout at our midsession video show on the Web Friday.

  HRS was also featured Thursday as a stock to accumulate in anticipation of a breakout.  

  HRS will be merging with L3 Technologies Inc. The new company will be called L3HarrisTechologies.

  HRS's stock moved higher in the morning and got over its breakpoint zone. (see 10 minute chart)

  The stock then pulled back slightly and used the breakpoint zone as technical support.

The stock then headed north. It closed near its high for the day. That is bullish and bodes well for a possible follow through.

   Tape Action

  HRS's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $164.46 in the prior session to as high as  $167.84 late Friday.

  A key bullish trade came late on Thursday when a block of 61,970 shares (duplicated) crossed the tape at $165.22.

  That was up from the prior block at $164.46 on 15,000 shares.

  Then near the close Friday a block of 40,968 shares (duplicated) crossed the tape at $167.84.

 That was up from the prior block at $167.23 on 4,000 shares.

  Business

  HRS operates in four areas. Its communications unit serves markets in tactical communications and defense, and public safety.

  Its space and intelligence systems provides complete Earth observation, environmental, geospatial, space protection, and intelligence solutions from advanced sensors and payloads, as well as ground processing and information analytics.

 The company's electronic systems offers solutions for electronic warfare, avionics and wireless technology.

 Its critical networks provides managed services supporting air traffic management, energy and maritime communications.  

 Charts

  HRS's 12-month performance chart shows the stock up 3% versus a 9% gain for the stock market.

  However, the stock has climbed 23% in performance since December.

  Insiders were recent buyers at $35 to $56 a share recently. They were sellers at $158 a share.

  HRS's long-term chart shows the stock climbing steadily from $50 a share back in 2013 to an all-time high of $175.50 late last year.

The stock had a pullback, but has since recovered and has been working higher.

  HRS's daily chart shows the stock climbing from $125 in December to a peak near $166 by February.

  The breakout Friday clears upside resistance. It comes with just modest volume.

  The stock's CCI momentum indicator is solidly bullish.

   Earnings Outlook

  This fiscal year ending in June analysts are forecasting a 23% increase in net to $7.98 a share from the $6.50 the year before.

  The highest estimate on the Street from six analysts is at $7.98 a share. There are six analysts tracking the stock.

  Net for the next two quarters will be solid.

  Analysts expect net for the fiscal third quarter ending in March to climb 22% to $2.04 a share from the $1.67 the year before.

  The highest estimate is at $2.10 a share. The company beat the consensus the past four quarters by 5 cents a share, 8 cents, 2 cents and 5 cents.

  Looking out to the fiscal fourth quarter ending in June, the Street predicts a 23% jump in net to $2.19 a share from the $1.78 the year before.  

  Profits for the fiscal year ending in June of 2020 are projected to climb 12% to $8.92 a share from the anticipated $7.98 this year.

Strategy Opinion:  TTD is targeting HRS for a move to $195. A protective stop can be placed near $162

Intermediate-Term Rating: Average.

Suitability:   Average Bulls.

                                 TTD's special research of  Stock's Prior Performance:  

Probability - Breakout Success - Bullish -  HRS scored some good gains off some of its recent breakouts.

Probability - Earnings Response - Extremely Bullish -  HRS rose 8 times after the past 9 earnings reports when there was a significant change in price.

Probability:  Seasonal Success - Neutral - HRS averaged a gain of 1.5% in April but a decline of 1.1% in May the past several years. 

           Stock's Prior Performance After A Breakout

(In actual trading, entry and exit points could vary depending on broker execution.

Also, ideal are breakouts to a new 52-week high or better, perhaps all-time highs.)

  Stock's Long-term Chart

 Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  -  Insider Selling in Red

   Stock's Monthly Seasonal Performance Chart - Past 5 Years

Showing % Months UP and % Change

Charts of Selected Breakout Stocks

Ticker Tape Digest’s

Stocks To “Sell or Short”

Ticker Tape Digest’s Daily List of “Stocks To Sell or Sell Short” ranks stocks well timed to be sold immediately based on daily trading. The list can be used as an alert to reduce current long-term positions.

Shorts from tape action so far today -  4

Stocks Screened - 12,234

Long-Term Environment for bears:  Unfavorable.

Bear Side -  Small list of breakdown stocks Friday. Bears be conservative.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

X4 Pharmaceuticals Inc. (XFOR)  - 12.57

Big Loss Projected This Year, TTD Sees Drop to 9.50

  XFOR, based in Cambridge, Ma., formerly Arsanis, Inc., is a biotech firm developing products to treat cancer. Annual revenues: $3.5 million. XFOR's stock falls sharply Friday and undercuts key technical support.

  So far today, XFOR is trading a heavy 506,815 shares. That is up sharply from the average daily volume of 16,000 shares.

  XFOR's stock gapped lower in the morning and cut below technical support.

  The stock touched an intraday low of $11.31 in the morning.

 The stock then lifted to $13.54, but then faded back to around $12. It then trended mostly sideways the rest of the day.

   Tape Action

  XFOR's tape action shows the recent block trades.

  One can see the price for the blocks falling from $12.45 in the morning down to $11.91 in the afternoon.

  A key bears trade came around noon when a block of 8,100 shares crossed the tape at $12.16.

  That was down from the prior block at $12.45 on 5,000 shares.

  Business

  XFOR is developing novel treatments of rare diseases including primary immunodeficiencies and cancer.

The company's oral small molecule drug candidates antagonize the CXCR4 pathway, which plays a central role in immune surveillance. Its product candidates include X4P-001, X4P-002 and X4P-003.

   Earnings:

  This year, analysts are forecasting a loss of $13.60 a share compared with a loss of $18.06 last year.

  Looking out to 2020, the Street is predicting a loss of $12.58 a share.

Charts:  

  XFOR's daily chart shows the stock moving lwer from $23 in March down to around $15. It now gaps lower with big volume. The stock recently went through a 1-for-6 stock split reversal.  

  XFOR's 12-month performance chart shows the stock down 80% versus a 9% gain for the stock market.

Strategy Opinion: TTD is targeting XFOR for a decline to $9.50 within the next few months or sooner. A protective stop buy can be placed near $13.30.

Suitability:   Aggressive Bears.

  TTD's probability research of Prior Performance:  

Probability - Earnings Response - Bearish.  -  XFOR fell one time after the past one earnings reports when there was a significant change in price.

Probability:  Seasonal Activity - Extremely Bearish. -   XFOR averaged a decline of 20.1% in April  and a decline of 14% in May the past several years.

   Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  - Insider Selling in Red

   TTD takes no responsibility for trading by those using this information. The stocks presented in our report are those we deem the best looking "Day Trades" for the long side. We take no responsibility for the accuracy of this data, although every effort is made to present the information correctly. Copyright Ticker Tape Digest. - 2019

    TTD columnist Leo Fasciocco has covered the stock market for over 30 years. His articles appear in many publications. He has also been  a speaker at the Money Show conferences. He has been on television and radio. He is author of many educational articles about stock investing and the book “Guide To High-Performance Investing.”

   For information to subscribe to the Ticker Tape Digest Services call: Beverly Owen at 1-480-878-8381 or 480-704-3331

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 TTD Pro Report includes a Morning chart slide show of breakout stocks, a Midsession video-audio show with commentary on breakout stocks and shorts and a Final end of day overall report on breakout stocks for the session, short plays and accumulation plays.  There are other features too such as Quick Trades and Long-term Plays.  

TTD Daily Report is $39. It covers a Morning slide show of charts of stocks breaking out and a TTD end of day print report covering breakout stocks and shorts.

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(The information contained has been prepared from data deemed reliable but there is no guarantee of complete accuracy. Ticker Tape Digest Inc. is not affiliated with any broker, dealer or investment advisor. Nothing in this publication constitutes an offer, recommendation or solicitation to buy or sell any securities. Further research is advised. This report is copyrighted and no redistribution is permitted with out permission.)